Globant (GLOB) Q2 2026 earnings summary

Executive summary

• Launched Glob.AI, an AI-native platform enabling outcome-based, consumption-driven professional services, now adopted by 45 clients and 45% of top 20 accounts.

• Glob.AI ARR reached $52.8M in Q2 2026, up 61% quarter-over-quarter, with a pipeline of $436.8M and expected to surpass $110M by year-end.

• Q2 2026 revenue was $614.4M, flat year-over-year, with record free cash flow of $12.6M and strong growth in top client cohorts and AI/data studios.

• Initiated a business optimization program, including workforce realignment and office consolidation, incurring a $32.3M one-time charge.

• Workforce optimization and continued share repurchases were executed to align with business model transformation.

Financial highlights

• Q2 2026 revenue: $614.4M, within guidance, up 1.2% sequentially and flat year-over-year.

• Adjusted gross margin: 36.5%, slightly down due to FX headwinds and lower utilization.

• Adjusted operating margin: 13.2%, below guidance, impacted by FX and optimization costs.

• Adjusted net income: $60.3M (9.8% margin); adjusted diluted EPS: $1.40.

• Free cash flow: $12.6M for Q2; $48.7M for H1 2026 (company record).

Outlook and guidance

• Q3 2026 revenue expected between $607M–$615M; adjusted operating margin 13.5%–14.5%.

• Full-year 2026 revenue guidance revised to $2.428B–$2.462B; adjusted EPS $5.75–$6.15.

• AI Pods expected to reach 4% of revenue by year-end, with continued strong free cash flow and margin improvement as optimization benefits materialize.

• Glob.AI ARR is on track to exit 2026 at no less than $110M.

• Commercial opportunity pipeline for AI Pods stands at $436.8M, indicating strong future demand.